Mishandled baggage rates dropped 23% in 2025, falling below pre-pandemic levels for the first time, even as passenger volumes hit a record 5 billion globally. However, mishandling still costs the airline industry $6.3 billion annually, according to SITA's 2026 Baggage IT Insights Report.
Key metrics from the report
The mishandling rate fell to 4.9 per 1,000 passengers, down from 6.4 in 2024. Total mishandled bags decreased 19% to 24 million. The average cost per mishandled bag reached $260, replacing the outdated $150 benchmark. With net profit per passenger averaging just $8, one mishandled bag erases profit from more than 30 seats, and five bags wipe out the profit of an entire flight.
Technology driving improvement
Digital transformation efforts are taking hold, with real-time data sharing, AI routing, biometric bag drop, and connected passenger devices driving the improvement. Nicole Hogg, Portfolio Director Baggage at SITA, said: "Baggage is shifting from a logistical problem to a digital service. Passengers expect to know where their bag is at every moment, and they're increasingly willing to help us track it."
Real-world results
Apple's Find My integration with SITA WorldTracer cut permanently lost luggage by 90% in its first year and shortened delayed-bag recovery by 26%. SITA also integrated Google's Find Hub share item location feature into WorldTracer. Thai Airways, using SITA's Auto Reflight, reduced a three-minute task to one second per bag across nine airports.
Infrastructure challenges
Passenger volumes are rising faster than infrastructure can handle. In 2025, 5 billion passengers traveled, up from 4.8 billion in 2024. David Lavorel, CEO at SITA, said: "Airports are operating closer to their physical limits every year, and the answer isn't always more concrete. Data, AI and predictive operations let us get more out of the airport we already have."
Over the longer term, mishandling has fallen by close to three-quarters since 2007. The report emphasizes that the next phase involves bringing existing technology to every transfer, handler, and airport to provide greater visibility and connect every step of the journey.
